An investor iIs worried about the company's profit projections which investors think are too aggressive. One of the analysts will present a company-related report one week before the earnings...


An investor iIs worried about the company's profit projections which investors think are too<br>aggressive. One of the analysts will present a company-related report one week before the earnings<br>announcement. Report shows analyst reports, while Forecast shows projected company profits<br>Prior Probabilities<br>P(Good Report) = 0.2<br>P(Medium Report) = 0.5<br>P(Bad Report) = 0.3<br>Conditional Probabilities<br>P(Below Forecast | Good Report) = 0.1<br>P(Below Forecast | Medium Report) = 0.4<br>P(Below Forecast Bad Report) = 0.9<br>What is the probability that the analyst will present a good report given the below forecast company<br>profit (below forecast)?<br>

Extracted text: An investor iIs worried about the company's profit projections which investors think are too aggressive. One of the analysts will present a company-related report one week before the earnings announcement. Report shows analyst reports, while Forecast shows projected company profits Prior Probabilities P(Good Report) = 0.2 P(Medium Report) = 0.5 P(Bad Report) = 0.3 Conditional Probabilities P(Below Forecast | Good Report) = 0.1 P(Below Forecast | Medium Report) = 0.4 P(Below Forecast Bad Report) = 0.9 What is the probability that the analyst will present a good report given the below forecast company profit (below forecast)?

Jun 10, 2022
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